Gold is firmer this morning…as of 5:30 am Pacific, the yellow metal is up $15 an ounce at $1,589…Silver has climbed 35 cents to $27.53…Copper is up 8 cents at $3.53 (a close above resistance at $3.50 would be significant)…Crude Oil is $1.28 higher at $91.15 while the U.S. Dollar Index is off one-quarter of a point to 82.75…
More Fed Action Appears Likely
Fed Chairman Ben Bernanke’s two days of testimony before Congress have kept hopes alive for QE3 or some form of additional Fed action given a weak U.S. employment situation…Bernanke also made it clear he’s more concerned about the threat of deflation than inflation…he noted that while the Fed does not see a double dip recession, it is committed to doing all it can to ensure progress in employment and that it’s ready to take action as needed…the Fed next meets at the end of the month, but there appears to be a growing view in that the markets that the Fed will take action at its September meeting with perhaps additional measures following the November elections…
Today’s Markets
Asian markets were strong overnight with China’s Shanghai Composite gaining 16 points to 2185…European shares have hit an 11-week high this morning while U.S. stock index futures as of 5:25 am Pacific are pointing toward a solid opening on Wall Street despite an earnings “miss” just reported by Morgan Stanley…
TSX Gold Index
The TSX Gold Index has declined in 9 out of the last 10 sessions and in 18 out of the last 24, so conditions are ripe for an immediate rally in Gold…the Index closed yesterday at 279, 13 points above its May low in what could be an attempt at a double bottom…RSI(2) is near previous extremes, so an imminent rebound appears to be in the cards…below is a 3-month daily TSX Gold Index chart from John…
Venture Exchange
The Venture Exchange continues to hold above its June 26 low of 1166, and good drill results from some companies this week have helped to improve sentiment somewhat…
Canamex Resources (CSQ, TSX-V) gained a whopping 290% yesterday on Venture volume of 23 million shares (nearly 30 million for all exchanges) after announcing it had intersected 118 metres grading 4.08 g/t Au at a depth accessible by open-pit at its Bruner Gold Project in central Nevada…assay results for five more holes in the 6-hole program are pending…
In the Dominican Republic, where we’ve been closely following the success of GoldQuest Mining (GQC, TSX-V) which released an excellent step-out hole yesterday at Romero, Unigold Inc. (UGD, TSX) climbed 20% yesterday on total volume (all exchanges) of 4.2 million shares after reporting 77 metres grading 3.81 g/t Au in a hole drilled approximately 2 km east of its Candelones Gold deposit (part of the same sequence and about 45 km northwest of GQC’s La Escandalosa Project)…this eastern extension area, first identified by Unigold last year, is showing some promise with nearly 30 holes drilled to date…mineralization remains open along strike, dip and at depth…the exploration target is a large VMS hosted massive sulphide/epithermal-style deposit…
With rising 100 and 200-day moving averages (SMA’s) and a “hot” area within which to explore, the overall outlook for Unigold has to be considered positive but keep in mind the company does have over 200 million shares outstanding…UGD’s next major technical hurdle to climb is resistance around 45 cents as John’s chart shows below…
GoldQuest Mining (GQC, TSX-V)
GoldQuest did not disappoint yesterday with results from the first 25-metre step-out hole at its Romero discovery…GQC shot up as high as $1.28 on total volume (all exchanges) of 9.7 million shares…so far, so good in these early stages as GQC attempts to delineate a major Gold-Copper deposit…this is indeed showing signs of developing into a big discovery story as we suspected it could…John’s chart shows that some minor but healthy consolidation could be in store for GQC in the immediate future before the next potential major leg up…
Rainbow Resources (RBW, TSX-V)
Rainbow’s approach to exploration at its promising International Silver Property in the prolific West Kootenay region of southeastern British Columbia bears some similarities to the multidisciplinary approach taken by GoldQuest at La Escandalosa…preparations for drilling the International for the first time ever have been ongoing since 2007, initially through privately-held Braveheart Resources and then Rainbow beginning last year when RBW acquired Braveheart…last night we posted Part 2 of our on-site interview with Rainbow President David W. Johnston…the International gives Rainbow some serious “blue sky” possibilities, and the upside potential clearly outweighs the downside risk at current levels as the company prepares to start its drill program…
Technically, John’s chart below shows how RBW has recently broken out of a down trendline (a “sub-trend” in place since the spring), a bullish sign that the stock is gaining some important traction as drilling draws closer…rising 200 and 300-day moving averages (SMA’s. not shown in this chart) confirm an overall bullish long-term trend…the 50-day SMA has flattened out and should soon to ready to turn to the upside which makes current levels the “sweet spot” for entry…RBW closed up a penny at 18.5 cents yesterday…
Note: Both John and Jon hold share positions in RBW. Jon holds a share position in GQC.
Not so good U.S. jobs report dragged us down somewhat, but we are still in fairly
good shape. R !
Comment by Bert — July 19, 2012 @ 5:06 am
RBW – Buy Vol:Sell Vol ratio is the most positive its been in months. It is disconcerting though that there are no drill permits for any properties in West Kootenays. And as I write the SP goes above .20 🙂
Comment by Andrew — July 19, 2012 @ 6:24 am
I agree Andrew that permits are beginning to drag out a bit here but def nice to see buying pressure
Comment by db — July 19, 2012 @ 6:32 am
Finally, nice to see some encouraging movement in RBW. I’ve been patient and I’m really excited to see that’s going to happen in the nearest future…
Comment by Kalkan - Sweden — July 19, 2012 @ 6:34 am
July 19th & no permits. Should we now look forward to winter drilling ?
It’s a red flag my friends & causes one to wonder, is it really the
bureaucrats ? I must try to continue believing in Rainbow, but
as the days slowly pass by, it is becoming more difficult… R !
Comment by Bert — July 19, 2012 @ 7:15 am
RBW will have an explosion to sky high .. not the same as GQC but going to be 400% from current price. Needless to say I am holding good volume watching in the front line. Current turnover is still low but I have loaded enough for the show. When we are going to see 500K- 1000K turnover? @Bert, be more optimistic in this one. The big players will join soon.
Comment by Theodore — July 19, 2012 @ 7:43 am
Theodore
I am trying but it’s all about expectations over an extended period of time.
How would you feel if your flight was being delayed over & over, although
you were told, you would arrive yesterday. Anyway, i am only joking.
Comment by Bert — July 19, 2012 @ 7:49 am
I am just wondering how far they will let RBW run without closing the PP. if I remember correctly(correct me if I’m wrong) the last PP at 15c wasnt closed when we ran to 29.5.
Comment by db — July 19, 2012 @ 7:54 am
Bert – drill permit is still being processed and drilling planned 7 – 9 days after permit is received. That means first week of August at the very earliest, assuming permit is received this week. If its further delayed, who knows when there will be any drilling. I don’t understand why they didn’t start on another property or even have permits in sequence for properties as they became accessible after the snow melt.
Comment by Andrew — July 19, 2012 @ 8:01 am
RBW – there will be some back pack drill assays from the graphite property before any other drill results.
Comment by Andrew — July 19, 2012 @ 8:16 am
Andrew
Your brain is churning now… What really bothers me is that Mr. Johnston is after saying
that they’ve have accepted their drill plan, so why a delay in getting the permit(s), pony
express ? Everything may be as stated, but i have been slow tracked by so many companies
that i am now leary. Sorry but i guess things happen that way. R !
Comment by Bert — July 19, 2012 @ 8:24 am
Rule number 1. – Never believe a time frame that a CEO gives you for anything. Its a fact – they do not know.
Rule number 2. – Never believe a CEO on the price he feels his stock will run. He does not know.
RBW – drill results in November.
I am not negative on RBW – but I believe it will happen when we see the NR. As for share price, how many times have we seen such promising things go bad or not measure up to expectations. We will know the drill results when we see them.
Comment by dave — July 19, 2012 @ 9:07 am
dave – that’s the truth! 🙂
Comment by Andrew — July 19, 2012 @ 9:11 am
I couldnt give a crap about drilling if buying pressure keeps RBW in an uptrend. RBW is starting to get a rep (with me anyways) of always being late on promises, so it doesnt surprise me we are still waitng for permits…
Comment by db — July 19, 2012 @ 9:13 am
@Bert… true, if the plane is delayed, you will not feel good. If you are not in a rush to go back or go to destination, not a big deal… relax and buy some time. We have see the volume for RBW… current turnover is truly not good enough … I am sure that one day the volume will jump … Who knows when will the Permits come into play? Soon … I mean in July.
Comment by Theodore — July 19, 2012 @ 9:18 am
DB – I couldnt give a crap about drilling
Bert – Your past comments don’t indicate that. Never trouble Rainbow
until Rainbow troubles you. R !
Comment by Bert — July 19, 2012 @ 9:19 am
Theodore
I sold earlier at 0.265 & pray tell me, who out there thought i was making
the right move.. I sold because i was leary. We are not privy to pertinent
information, so we trade on instinct. In all honesty, i am not willing to
give up yet, or sell right now.. Your flight is delayed because of Rainbow
fog. R !
Comment by Bert — July 19, 2012 @ 9:29 am
Bert- I stated a fact that permits are dragging out..never said I was concerned about it. I had asked a couple days ago if anyone from BMR has heard anything about permits and YES, I would like to see the drills turn, but if volume keeps picking up and we gain a cent or two a week until drilling, NO, I dont care if drilling is delayed. If we were still stagnant waiting, it would be a different story.
Comment by db — July 19, 2012 @ 9:30 am
Somebody know what happened to VGD? Sounds and looked so promesing earlier, now 0,04…
Comment by Kalkan - Sweden — July 19, 2012 @ 12:08 pm
Kalkan – The ‘hit’ they had earlier this year was being touted as a discovery hole. I’m guessing they haven’t found anything since. Basically it looks like a repeat of last year. They would seem to be in the right area, geologically, but they can’t find any gold, its invisible! 🙂 So, I think its cow pasture. 🙂 Just hope RBW doesn’t turn out to be the same.
Comment by Andrew — July 19, 2012 @ 12:24 pm
I am finding it difficult getting RBW off my mind. The delay in receiving permits must
be costing them a considerable amount of cash, drills idling, manpower, etc. If the
drill plan has been passed by Government, pray tell me why Mr. Johnston don’t pick up
the phone, ask for a person of authority & place some pressure on whomever. I would
have a tent located outside their door. This is serious business. R !
Comment by Bert — July 19, 2012 @ 12:53 pm
miningweekly.com/article/junior-explorers-geology-teams-a-make-or-break-factor-2012-06-18
Comment by Hugh — July 19, 2012 @ 2:12 pm
Bert – I mentioned the cost of an idle drill rig on stand by etc. to David Johnston and Pierre. Even with it on stand by they need 7 – 9 days, so that probably means at least two weeks, before drilling will commence following the receipt of a drill permit.
I have reservations, and have since early in the year, about management skills. If RBW was being managed by the CEO of GR, I think the share price would be at least 50% higher and the news flow so much more professional. A lesson I’ve learned is don’t invest in a junior until it has a drill permit! Shareholder value cannot be maximised with the current management unless they learn very quickly.
A high level employee of RBW recently advised me to contact David or Jon for information. David put me in touch with Pierre and doesn’t know who Jon is. Management’s approach reminds me of someone with an expensive hobby and I wonder if they have the ability to take the project to the next level. Having said that, I expect the drill permits for all their properties will be issued tomorrow. 🙂
Comment by Andrew — July 19, 2012 @ 5:29 pm
Andrew – Having said that, I expect the drill permits for all their properties will be issued tomorrow. 🙂
Bert – Because of the delays in receiving permit(s) & because of your above noted words, i would suggest
we can take that to the Bank. How did you find out ? ha ! Good night ! R !
Comment by Bert — July 19, 2012 @ 5:34 pm
you guys are funny, Andrew, you and I think alike. An experienced investor knows that RBW hit a spot in the Technicals and is being traded off this factor. That’s not to say that RBW is not going to go up. All stocks go sideways, up, or down and for reasons. But right now, its people trading it who don’t have a clue what they are about. It may still go up, or it may drop tomorrow if they take thier small profits. I trade off Technicals all the time and I don’t have a clue where thier property is and if they are even drilling. My point is that RBW will move up strong at some point, but I would not be holding it when assays are near. Play the charts with anything you do and you usually come out ahead.
To those who commented that RBW will be 400% higher, gimme ur crystal ball with the genie inside telling you this, because I would like to have a talk with her.
Comment by dave — July 19, 2012 @ 7:48 pm
Dave – I trade off Technicals all the time
Bert – No wonder you are filing for bankruptcy (joking)… Isn’t it a fact that the technicals have
been telling us all year, that the Venture was about to reverse & move up, up & up. R !
Comment by Bert — July 20, 2012 @ 3:59 am